I show that the “consumption variation” approach, commonly used in infinitely lived agent models to measure the welfare impact of a policy, is not accurate in overlapping generations environments. While in an infinitely lived agent environment the consumption variation can be shown to be equivalent to a measure based on the Hicks compensation principle, this is not true in overlapping generatio...

Predictions of rates of inbreeding (DeltaF), based on the concept of long-term genetic contributions assuming the infinitesimal model, are developed for populations with discrete or overlapping generations undergoing mass selection. Phenotypes of individuals are assumed to be recorded prior to reproductive age and to remain constant over time. The prediction method accounts for inheritance of s...

It is now widely believed that government intervention is essential to ensure Pareto efficiency in the standard overlapping generations economy with nonaltruistic agents. This paper argues that the normal profit-seeking activities of private intermediaries—missing from the standard overlapping generations economy—would tend to eliminate the need for such government intervention. A private earni...

In this paper, we show that within the set of stochastic three-periodlived OLG economies with productive assets (such as land), markets are necessarily sequentially incomplete, and agents in the model do not share risk optimally. We start by characterizing perfect risk sharing and …nd that it requires a state-dependent consumption claims which depend only on the exogenous shock realizations. We...

In this paper, we show that within the set of stochastic three-periodlived OLG economies with productive assets (such as land), markets are necessarily sequentially incomplete, and agents in the model do not share risk optimally. We start by characterizing perfect risk sharing and …nd that it requires a state-dependent consumption claims which depend only on the exogenous shock realizations. We...

Balasko and Shell have shown that in a pure exchange overlapping generations model with many goods, but a single two period lived Cobb-Douglas consumer in each generation, there is generically a unique perfect foresight price path in which money has no value. If money has value, then generically there is at most one dimension of indeterminacy. Kehoe and Levine have shown that these results do n...

We use a three-sector overlapping generations model to examine the efficiency characteristics and income distribution in long-run steady-state equilibrium. Assuming two sectors produce intermediate goods within an oligopolistic competition, we explore implications for production distribution, given increase competition induced by antitrust measures. Our analysis presents possibility of welfare ...